What happened
Tesla (TSLA +3.53%) CEO Elon Musk made a big announcement last night, and it wasn't about his bid to buy Twitter. But that good news wasn't enough to overcome other headwinds that helped bring Tesla shares down 5.9% Friday, as of 3:05 p.m. ET.
So what
Musk went on Twitter last night to announce Tesla's first Semi truck delivery is expected to go to PepsiCo on Dec. 1. But Friday's jobs report became investors' priority today, overshadowing that good news from Musk. With more jobs being added in September than expected, along with a lower unemployment rate, investors see continued action coming from the Federal Reserve raising interest rates. That caused investors to shed higher-risk growth stocks, including Tesla. Since it's looking more likely that Musk will own Twitter, investors are right to wonder whether he will have to sell any more Tesla shares to fund that deal.
Image source: Tesla.
Now what
Investors have been looking forward to Tesla diversifying its product offering with both the battery electric Semi truck and the Cybertruck. That electric pickup truck is scheduled to begin shipping next year.
The Semi truck will be able to travel 500 miles on a single charge. That compares favorably to the 330 mile range from rival Nikola's Tre BEV (battery electric vehicle). Nikola expects to have a longer-range option with its upcoming hydrogen-powered fuel cell electric truck. But there could be plenty of demand for electric heavy trucks needed for shorter, local hauls.
NASDAQ: TSLA
Key Data Points
The Semi truck won't noticeably impact Tesla's bottom line anytime soon, especially with the company expected to sell approximately 1.4 million electric cars and SUVs this year. But it's the first step in getting meaningful revenue from a more diversified product mix.
That didn't overcome the market headwinds today, though. Investors fear the continued hot job market -- even after several big interest rate hikes -- could mean a hard landing or recession that would mark a tough stretch for any growth stock. It also remains unknown if Musk will need to sell more shares of Tesla stock to fund his Twitter purchase should it go through. Some analysts believe so, and that's one more reason investors are probably selling today.
